We understand that investing in a Quest Franchise business is a big decision, so we’re sure you might have a few questions. Our most common Franchise FAQs are listed below, but if there’s something that still needs answering please get in touch by email, and a team member from our Quest Franchise Establishment team will call you back at a time that’s convenient for you.
INITIAL COSTS*
Application Fee: $1500.00 plus GST per Application. This Application Fee forms part of the approval process.
Initial Franchise Fee: $60,000 plus GST. This covers the start-up training costs provided by Quest (travel & accommodation not included).
Legal fees for independent advice: Prior to purchasing a Quest franchise business, you will need to obtain independent legal advice. Legal fees can vary, depending on who you engage with.
Stamp Duty: This may be payable on the documentation. Stamp Duty laws vary from State to State so you must obtain independent legal advice.
Total Franchise Business Cost: Quest Franchise businesses are generally over $750,000 . The cost of a Quest franchise business is calculated based on several factors including the number of serviced apartments, tenure, location and existing conditions.
ESTABLISHMENT COSTS*
Prepaid Expenses: Between $30,000 to $150,000 plus GST (indicative costs). These costs contribute to the purchase of the existing prepaid expenses of the business.
Additional Funds including Working Capital: To qualify for a Quest franchise business, you must have available working capital, the amount of which will vary depending on size, maturity of business and other factors.
ONGOING FEES
Franchise Fees / Royalty Fees / Gross Sales Fee: 8% of Gross Sales plus GST (payable monthly in arrears).
Brand Fee: 1% of Gross Sales plus GST (payable monthly in arrears).
Yes. Quest has developed a well-defined network planning and project management process of new locations, which can involve years of research and planning. This process takes into account both the economic situation of the target location, as well as extensive discussions with our corporate customers forecasting where they need to be now and into the future.
No. We need Franchise Business Owners to be energetic, people orientated and committed to working within our Franchise System Framework. The business skills required to be a successful Quest Franchise Business Owner can be learned. However, the intangible qualities that drive business success such as passion and dedication cannot.
Yes. Whilst it’s true that we’ve created a tried-and-true business model that every hotel Franchise Business Owner depends on for their success, there is still a very high expectation that our Franchise Business Owners will be entrenched in the day-to-day running of the business with an energetic and hands-on approach to business, to maximise their local market place.
Another critical element of success lies in the partnership between Quest as Franchisor and our hotel Franchise Business Owners. This ensures that each hotel location is operated by the ‘right’ Franchise Business Owner – someone prepared to undertake a rigorous assessment process to ensure the partnership will be long-lasting and rewarding for all stakeholders.
Investing in a Quest franchise business is not like buying a job - it's buying into a business and a way of life. We need our Franchise Business Owners to be energetic, people-orientated and committed to working within our franchise system network. Owning and running your own business means you need to bring your passion and dedication to the business as well as the below qualities:
Growth & Learning Mindset
Our selection process gives both parties the opportunity to fully understand whether the partnership is right for both Franchisor and Franchisee. This means that both parties have the right to terminate the Application without reason at any time.
The process involves seven stages and can take up to six months to complete and be approved. It includes a series of self-assessment profiles, background checks, financial assessments as well as interviews and time talking with other Franchise Business Owners in the Quest network.
The selection process is designed to be rigorous, again, to ensure it is the right fit for both parties.
Once they’ve joined the Quest family, new Franchisees receive ongoing support during the first year and beyond, to ensure they are assisted in all aspects of running the business.
Yes. Quest is accredited with a number of major Australian Banks who have provided funding of up to 70% of the value of the business. Funding levels provided by banks may vary depending on a number of factors, including the circumstances of the individual applicant/s.
Yes. The Quest Franchise network has expanded significantly since its creation in 1988 and the business model has developed to be a very successful hotel franchise business. This in turn has encouraged and motivated many Franchise Business Owners within our network to purchase multiple hotel businesses. Quest has a clear strategy and policy around Multi-Unit Franchising for the group.
We have created a business model underpinned by a system upon which every Franchise Business Owner depends for their success. But it's not a business model that is able to support absentee investors. To become a Quest Franchise Business Owner you must be prepared to make a significant investment and commitment to the business, both personally and financially. And whilst a typical Quest Franchise Business Owner can achieve an operating return of between 8% - 20%1 per cent of turnover, the rewards in terms of professional satisfaction and lifestyle are also significant. However, overall success depends on many factors, including your ability and commitment to the business.
The landlord is a significant stakeholder in the Quest business model, and it is crucial for Franchise Business Owners to maintain a strong relationship with the landlord to ensure business success. Quest Franchise Business Owners buy into a leasehold business. This means Franchise Business Owners are investing in much more than the right to display the Quest logo on the door of their business. It means acquiring an asset, which provides the right to generate income from the property secured through long-term tenure with the landlord.
Consequently, Franchise Business Owners hold tenure over a multi-million dollar property without the pressure of raising the capital required to purchase the building. Franchise Business Owners are supported by Quest in managing their relationships with the landlords, who enjoy the benefits of a secure and stable investment with a trusted Australian brand as a long-term tenant.
For over 30 years, Quest has developed and honed a proven structure and formula to support franchise business owners in successfully running their businesses. This includes sales and operational support, business advice and the more practical operations manual containing every aspect of operating a Quest Franchise business.
The widespread recognition - and power - of the Quest brand also underpins the support provided to Franchise Business Owners through national marketing activity.
We provide an intensive Franchise Business Owner Induction Program and onsite support program for all new Franchise Business Owners. The ongoing Franchise support model is provided via the Franchise Relationship Manager (FRM), plus a team of Business Partners (BPs) can provide specialist advice in certain areas of the business as required.
The Ascott Limited is the World’s largest International Serviced Residence Owner / Operator. Being a member of Ascott provides a solid platform for the global expansion of the Quest brand.
For more information about Franchising, please visit the Franchise Council of Australia's Website.
Please also read the ACCC guidance on buying a Franchise: https://www.accc.gov.au/business/industry-codes/franchising-code-of-conduct/buying-a-franchise
Please click on the enquiry link below to lodge your interest with us and we will be in contact within 48 hours to start the Franchise Selection Process.* Initial costs and establishment costs may vary depending on a number of factors.
1 For the year ended September, 2019, based on returns provided by 60% of mature businesses. This is an illustrative figure and not a prediction of future performance of any franchisee’s particular business.
2 Funding levels provided by banks may vary depending on a number of factors, including the circumstances of the individual Applicant/s. Quest requires compliance to its maximum franchise gearing policy of 60% for Greenfield Sites and 70% for Existing Sites.
Note: The information provided is current as at 30 June 2020. Quest reserves its rights to vary any of the conditions or terms contained herein.